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March 20, 2006
Oil price up on Nigerian attack
Oil prices rose in early trading on Monday following reports of the latest attack on a pipeline in Nigeria.
Italian oil firm Eni confirmed that one of its Nigerian pipelines had been hit by an "act of sabotage", losing an unspecified amount of production.
Militants are attacking facilities in Nigeria's main Niger Delta oil region to demand that a greater share of the wealth stays in the local area.
US light crude was up seven cents to $62.84 in early Far Eastern trading.
"I think prices are reacting again to the situation in Nigeria, with Eni reporting attacks on its pipeline," said Andrew Harrington, resources analyst at ANZ Bank in Sydney.
Nigeria, Africa's biggest producer of crude, has seen a 20% cut in output since militants launched attacks on foreign oil companies at the start of this year.
The other two main factors keeping oil prices high are the ongoing security situation in Iraq and the nuclear stand-off with Iran that could ultimately result in trade sanctions against Tehran.
Posted by Publisher at March 20, 2006 12:52 PM
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